Texas House Bill HB2542

Texas 2015 - 84th Regular

Caption

Relating to the establishment and administration of the qualified ABLE program; granting authority to impose a fee.

Impact

The legislation has specific implications on state laws by amending the Human Resources Code to include provisions for ABLE accounts. It grants the comptroller of Texas the authority to establish rules that align with the federal guidelines under Section 529A of the Internal Revenue Code. The comptroller will oversee the management of these accounts, including contracting with financial institutions to act as plan managers. With this framework, the state is moving toward a more inclusive financial system for disabled individuals.

Summary

House Bill 2542 focuses on establishing and administering the qualified ABLE program in Texas. This program is designed to enable individuals with disabilities to create and manage ABLE accounts, which allow them to save funds intended for qualified disability expenses without losing eligibility for essential public benefits. By creating a structured account system, the bill aims to enhance financial independence for persons with disabilities and ensure they can manage their funds more effectively.

Contention

While the bill aims to provide a helpful resource for persons with disabilities, it also outlines the power and fees that the comptroller can impose related to account management. There may be concern regarding the fees that could affect the net savings of individuals who may rely significantly on these accounts for their well-being. Additionally, there might be discussions around the adequacy of support systems for those navigating this new financial landscape, emphasizing the need for clear communication about the program's benefits and operational details.